With half the year in the books now is a great time to access your businesses performance for the first half of the year. You may be taking a well-deserved summer vacation to refresh your mind, which will give you a new perspective on the day-to-day issues that exist in your business. This is a great time to review your business and financial plan to see what adjustments need to be made to improve your results for the next six months.
Is your business on track to achieve your revenue goals and more importantly your profit goal, your paycheck? From evaluating your staffing needs, accessing your cash flow situation, and revising your business plan, your business will benefit from a mid-year review.
Business Plan Six or seven months ago you identified the strengths, weaknesses, opportunities and threats to your business and you wrote down your goals on how you would overcome these weaknesses and exploit your opportunities. Are you on track to achieve those goals, are those goals still realistic, or will you achieve much more than you anticipated? All these are valid questions to ask yourself in re-evaluating your business plan. You may need to ramp your sales goals up if your having a great year or maybe the business environment has changed so that one or two new goals are necessary to accomplish your overall financial goals. If you are consistently coming up short of your goals you need to ask yourself why and find new ways to motivate you and your staff.
Financial/Cash Flow Plan. The key element of any well-written business plan and financial plan is setting a profit number and managing to it. The business and financial plan work together, the business plan supporting the financial plan and the financial plan supporting the business plan all to make your desired profit a reality. If one or both of these are out of alignment with the other the end result will be disappointing profits or much worse negative cash flow. Now is the time to re-align them so you can take advantage of the next six months to achieve the goals you set forth at the beginning of the year.
We all know cash is king and in order to grow a sustainable business, maintaining positive cash flow is critical. If you are not achieving the cash flow targets you set now is the time to make adjustments, do you need to cut expenses or possible staff to stop the bleeding, or if you are exceeding your cash flow targets do you have a plan to set cash aside for taxes or re-investment. These are all decisions that will benefit your business sooner than later.
If your not sure where to start Beartooth Business Consulting can guide you through this process, making you and your business stronger and more successful. Call us at 406-690-5988 or email at firstname.lastname@example.org
Mike Booth is President of Beartooth Business Consulting. Beartooth Business Consulting is a Strategic Management firm committed to the success of small businesses like yours. We help you understand where your business is at today, create a vision of where you want your business to go, and define the steps needed to realize your vision.